Gold Prices Fall on Middle East Tensions, Inflation Pressures

ERBIL, Iraq — Gold prices headed for a weekly decline as Middle East tensions persisted and inflation concerns mounted. Spot gold slipped 0.3 percent to $4,462.22 per ounce, according to Reuters data, while the metal had shed roughly 1.6 percent since the start of the week. U.S. gold futures fell 0.4 percent to $4,489 for August delivery, mirroring the weakness in spot prices. Rising inflation figures and expectations of higher interest rates weighed on the market, adding pressure to gold prices. Geopolitical uncertainty in the Middle East also dampened hopes for a potential peace agreement between the United States and Iran, further contributing to the downtrend. Global markets continued to see gold under pressure from both geopolitical instability and economic indicators, with the precious metal facing headwinds from multiple directions heading into the close of the trading week.